How Does Private Credit Power the $24B Tokenization Market?

tl;dr: The tokenized real-world asset (RWA) market has surged to $24 billion, with private credit leading this growth. Ethereum remains the dominant platform for tokenized RWAs, despite emerging competitors.

Meta Description: Explore how private credit drives the $24B tokenization market, with Ethereum's continued dominance, and what it means for companies seeking funding.

Introduction

In recent years, the financial landscape has witnessed a transformative shift with the rise of tokenized real-world assets (RWAs). This innovation has unlocked new avenues for companies seeking funding, offering enhanced liquidity, faster settlement times, and fractional ownership opportunities. A recent report by RedStone highlights that the RWA tokenization market has expanded to $24 billion, with private credit emerging as a significant driver. Despite the emergence of faster and more scalable blockchains, Ethereum continues to dominate the tokenization space.

Understanding Tokenized Real-World Assets (RWAs)

Tokenized RWAs are digital representations of tangible assets—such as real estate, commodities, or private credit—on a blockchain. This process involves converting physical assets into digital tokens, enabling them to be traded, transferred, or utilized within decentralized finance (DeFi) ecosystems. For companies, tokenization offers several advantages:

• Enhanced Liquidity: By dividing assets into smaller, tradable tokens, companies can access a broader pool of investors, facilitating quicker capital raises.

• Faster Settlements: Blockchain technology enables near-instantaneous transactions, reducing the time and costs associated with traditional financial processes.

• Fractional Ownership: Tokenization allows for the division of assets into smaller units, enabling fractional ownership and broadening the investor base.

The Rise of Private Credit in Tokenization

Private credit has emerged as a dominant sector within the RWA tokenization market. As of mid-2025, private credit accounts for over $14 billion of the $24 billion market, representing more than half of the total RWA tokenization value. This growth is driven by institutional demand for higher yields and faster liquidity access. Notably, private credit offers yields ranging from 8% to 12%, making it an attractive option for investors seeking stable returns. (themarketperiodical.com)

Ethereum's Continued Dominance

Despite the emergence of faster and more scalable blockchains, Ethereum remains the premier network for tokenized RWAs. By mid-2025, Ethereum hosts approximately $7.5 billion in tokenized value across 335 products, accounting for 59% of the total market. This dominance is attributed to Ethereum's decentralized governance, robust security features, and established infrastructure, which have fostered trust among institutional investors. (tradingview.com)

Emerging Competitors in the Tokenization Space

While Ethereum leads the market, several other blockchains are emerging as strong contenders:

• Solana: Known for its high transaction speeds and low fees, Solana has attracted significant interest in the tokenization space. As of June 2025, Solana hosts approximately $351 million in tokenized assets. (tradingview.com)

• Aptos: Aptos has seen increased RWA deployment, hosting $349 million in tokenized assets as of June 2025. Notably, Aptos was the first non-Ethereum Virtual Machine network for BlackRock’s BUIDL fund. (tradingview.com)

• Avalanche: Avalanche now hosts $188 million in tokenized assets, including KKR’s tokenized fund. (tradingview.com)

These platforms offer unique features that may appeal to specific use cases, but Ethereum's established ecosystem continues to provide a solid foundation for tokenized RWAs.

Implications for Companies Seeking Funding

For companies looking to raise capital, the growth of the tokenized RWA market presents several opportunities:

• Access to a Broader Investor Base: Tokenization allows companies to tap into a global pool of investors, including those interested in digital assets.

• Improved Liquidity: The ability to trade tokenized assets on various platforms enhances liquidity, making it easier for companies to manage their capital needs.

• Faster Capital Raises: Blockchain technology streamlines the fundraising process, enabling quicker access to funds.

Conclusion

The tokenized RWA market, driven by private credit, has experienced significant growth, reaching $24 billion by mid-2025. While Ethereum continues to dominate the space, emerging blockchains offer additional options for companies exploring tokenization. For businesses seeking funding, embracing tokenization can unlock new avenues for capital raising, offering enhanced liquidity, faster settlements, and access to a broader investor base.

Call to Action

If you're a company looking to explore tokenization as a means of funding, consider partnering with established platforms and advisors to navigate this evolving landscape effectively. Engaging with experts can help you understand the benefits and challenges of tokenization, ensuring a successful integration into the digital asset ecosystem.

FAQs

What is tokenization of real-world assets?

Tokenization involves converting physical assets into digital tokens on a blockchain, enabling them to be traded or utilized within decentralized finance ecosystems.

How does private credit contribute to the tokenization market?

Private credit offers attractive yields and has become a significant sector within the tokenization market, accounting for over $14 billion of the $24 billion market as of mid-2025.

Why does Ethereum dominate the tokenization space?

Ethereum's decentralized governance, robust security features, and established infrastructure have fostered trust among institutional investors, maintaining its dominance in the tokenization market.

What are the benefits of tokenization for companies seeking funding?

Tokenization provides companies with access to a broader investor base, improved liquidity, and faster capital raises, enhancing their ability to manage capital needs effectively.

How can companies get started with tokenization?

Companies interested in tokenization should consider partnering with established platforms and advisors to navigate the evolving landscape and ensure successful integration into the digital asset ecosystem.